The Governance Compliance Statement states how the Shropshire County Pension Fund is governed. The below chart illustrates how the layers of governance work.
The Fund believes that good governance is an important element in reducing the risk of corporate failures in the future. It also believes that the long term commitment to corporate best practice will enhance investment returns.
The Shropshire County Pension Fund’s Governance Compliance Statement details the companies in which it invests. The Fund Investment Managers actively vote at Annual and Special Meetings on the Funds behalf.
Responsible Engagement and Investments
The Fund takes ethical investments very seriously and does this by influencing companies from the inside. The Fund uses F&C to actively engage with companies including having face to face meetings with a wide range of companies to promote corporate social responsibility and high standards in corporate governance among the companies in which the Fund invests. The Fund also believes that voting at Annual Meetings is important. By voting at these meetings the Fund is able to express its views on the level of board independence and pay contracts for senior executives for example. The Fund is also a member of the Local Authority Pension Fund Forum. 60 Local Authority pension funds are members of the Forum representing 75% of Local Government pension funds by value of assets. This gives the forum bargaining power when it talks to companies and influencing the way they behave.
The Fund has also chosen to engage with companies on social and environmental issues. The Fund employs F&C Asset Management to enter into sustained and constructive dialogue with UK companies via a Responsible Engagement Overlay programme. The programme aims to encourage companies to enhance their business performance by adopting better social and environmental practices. The impact of the programme is reported in the Responsible Engagement Overlay (REO) Quarterly Report.